Tax Treaty Case Law around the Globe 2014
1. Aufl. 2015
Besitzen Sie diesen Inhalt bereits,
melden Sie sich an.
oder schalten Sie Ihr Produkt zur digitalen Nutzung frei.
S. 129Chapter 13 Italy: The Meaning of "Payment" of Dividend under the OECD Model Revisited
Guglielmo Maisto
13.1. Introduction
Decision 4164 of the Italian Supreme Court of 20 February 2013 can be categorized among cases dealing with the meaning of "payment" of dividend under article 10 of the OECD Model. Even though the Supreme Court had previously investigated on this topic, the case at stake is highly significant for the reasoning underlying the Court's decision. Moreover, the importance of the decision is to be found in the fact that the Supreme Court also grounded its decision on the meaning and scope of the notion of "beneficial owner" and on the principle of the abuse of law.
13.2. Facts of the case
A company resident in Italy, entirely controlled by a company resident in the United Kingdom, distributed dividends in the period 2000-2001 to its own direct parent company. However, such dividends were not actually paid but instead converted into an interest-bearing loan in favour of the Italian company.
The UK company claimed the refund of the tax credit under article 10(4) of the Italy-United Kingdom Tax Treaty (hereinafter also "the Treaty") signed in Pallanza on 21 October 1988 and rat...